The number of new homes completed reached 50,650 in the final quarter of last year, up by just over 10% from 45,850 a year earlier, according to official housebuilding data.
Figures from the Office for National Statistics show that housebuilding was also up by 6% from 47,680 in the previous quarter.
Legal & General Mortgage Services managing director Kevin Roberts says “A healthy level of housebuilding activity and ongoing competition on mortgage pricing has given prospective buyers a reason to have a spring in their step this April.
“What’s more, last month saw a significant rise in new property listings, pointing towards a market that is slowly but surely re-establishing itself.
“For buyers, there are two positives to take: greater choice when shopping around and a market where house prices are stabilising.
“With demand for housing remaining robust across the UK, it is encouraging to see building firms battle back after being constrained by the significant economic pressures that have limited all parts of the housing market for the past few years.”
Saffron Building Society national account manager Phil Lawford says: “The mortgage market’s challenges have been well-documented on the demand side, but much less has been said about those on the other side of the coin.
“Housebuilders have navigated higher material costs as well as a slower business pipeline in the second half of last year after interest rates spiked to 6-7% in the summer.
“However, there are other opportunities in the new build market that could help boost supply.
“One way in particular is to boost support for self and custom build projects. “Around 13,000 people choose to build their own home in the UK every year, making the sector similar in size to some of the country’s larger national housebuilding firms – however the UK lags significantly behind other European countries in this area.”